GBP/USD Technical Outlook: Bullish Momentum Faces Critical Test

The How to buy meme coins on CoinbaseGBP/USD currency pair maintains its upward trajectory during Thursday's Asian trading hours, climbing toward the 1.2630 level. This marks the third successive session of gains as Sterling capitalizes on Dollar weakness, supported by declining US Treasury yields and improved market risk appetite.

Critical Resistance Levels in Focus

Technical analysts identify the 1.2650 psychological level as immediate resistance, coinciding with the 14-day Exponential Moving Average currently positioned at 1.2656. Beyond this zone, traders anticipate potential resistance at the 50% Fibonacci retracement level of 1.2673. A decisive break above these technical barriers could open the path toward 1.2700, where the 61.8% Fibonacci level converges with another psychological resistance point.

Mixed Technical Signals Emerge

While price action appears bullish, oscillators present conflicting signals. The 14-day Relative Strength Index remains below the 50 midpoint, suggesting underlying bearish momentum. The Moving Average Convergence Divergence indicator reinforces this cautionary signal, with both MACD line and signal line positioned below the zero level, typically interpreted as confirmation of bearish pressure.

Support Levels to Monitor

Should the pair reverse course, initial support appears at the round-number 1.2600 level. Below this, the 1.2550 zone represents a more substantial support area. A breakdown below these levels could see the pair retest last week's low of 1.2518 before potentially targeting the major psychological support at 1.2500.

Market Context and Considerations

The current GBP/USD movement occurs against a backdrop of shifting expectations regarding Federal Reserve policy and evolving risk sentiment. Traders should monitor upcoming economic data releases and central bank commentary for potential catalysts that could alter the current technical setup. The pair's ability to sustain gains above key moving averages will likely determine whether the current bullish momentum can extend further.